Bitcoin

DeFi

Velar

<p>Velar has launched the world’s first Bitcoin perpetual swaps decentralized exchange (DEX) in beta, attempting to create more utility around the world’s first cryptocurrency.</p>
<p>The new Velar Artha perpetual swaps <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-are-decentralized-exchanges-and-how-do-dexs-work" rel="null" target="null" text="null" title="null">DEX</a> launched on BOB (Build on Bitcoin) on Sept. 16, according to an announcement shared with Cointelegraph.</p>
<p>The milestone launch could unlock newfound Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) liquidity for the ecosystem, according to Mithil Thakore, the co-founder and CEO of Velar.</p>
<p>The CEO told Cointelegraph:</p>
<blockquote>
 “For the first time, retail and institutional BTC holders can earn a yield on native Bitcoin through providing liquidity or trading. This brings DeFi-like functionality directly to Bitcoin without the need for wrapping or bridging, potentially increasing Bitcoin's utility and value proposition.”
</blockquote>
<figure>
 <img alt="Velar’s new Bitcoin DEX offers yield and liquidity for BTC holders" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191faa2-22c1-78df-b8e6-e72e19f6199c">
 <figcaption style="text-align: center;">
  <p><em>Velar Artha Perp Dex. Source: Velar</em></p>
 </figcaption>
</figure>
<p>Velar is among the companies building Bitcoin-based <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/defi-a-comprehensive-guide-to-decentralized-finance" rel="null" target="null" text="null" title="null">decentralized finance (DeFi)</a>, also known as BTCFi, in a new technological paradigm that aims to bring DeFi capabilities to the world’s first blockchain network.</p>
<p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-cbbtc-boost-bitcoin-defi" rel="null" target="null" text="null" title="null"><em><strong>Coinbase cbBTC token may revolutionize Bitcoin DeFi adoption</strong></em></a></p>
<h2 id="bitcoin-could-dominate-the-defi-space-in-the-next-five-years">Bitcoin could dominate the DeFi space in the next five years</h2>
<p>While Ethereum remains the established home of DeFi and smart contracts, increasingly more firms are building DeFi capabilities on the Bitcoin network.</p>
<p>The continued BTCFi innovation could see Bitcoin dominate the DeFi landscape in the next five years, according to Thakore, who explained:</p>
<blockquote>
 “Ethereum's early lead in DeFi is likely to fade as users and developers recognize Bitcoin's superior monetary properties and true decentralization. This wave of innovation will attract a flood of users and capital to Bitcoin DeFi, overshadowing all previous crypto adoption.”
</blockquote>
<p>Continued BTCFi innovation could make Bitcoin the “definitive platform for decentralized finance,” added the co-founder.</p>
<p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-3-month-historic-rally-analysts-92k-btc" rel="null" target="null" text="null" title="null"><em><strong>Bitcoin set for 3-month historic rally as analysts eye $92K BTC</strong></em></a></p>
<h2 id="over-100-bitcoin-l2-chains-are-currently-being-developed">Over 100 Bitcoin L2 chains are currently being developed</h2>
<p><a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/a-beginners-guide-on-blockchain-layer-2-scaling-solutions" rel="null" target="null" text="null" title="null">Layer-2 (L2) networks</a> like <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/stacks-record-smart-contracts-nakamoto-upgrade" rel="null" target="null" text="null" title="null">Stacks</a> are essential for creating more utility around Bitcoin since the mainnet has no smart contract functionalities.</p>
<p>BTCFi could see an array of new use cases due to the over 100 L2s being developed around the world’s first blockchain network, explained Thakore:</p>
<blockquote>
 “With over 100 Bitcoin Layer 2 solutions currently in development, we're witnessing a major shift in the crypto landscape. These new Layer 2 solutions with smart contract capabilities on Bitcoin will quickly surpass Ethereum's functionality while maintaining Bitcoin's core strengths.”
</blockquote>
<p>The prediction comes nearly two weeks after Binance Labs and Tim Draper-backed Zest Protocol <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/binance-labs-zest-protocol-btcz-token-bitcoin-defi" rel="null" target="null" text="null" title="null">launched its new BTCz token</a>, enabling Bitcoin holders to earn a staking yield on their BTC via Babylon Protocol.</p><iframe width="100%" height="315" src="https://www.youtube.com/embed/_9TfO2xPe1o" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe><advertisement>
 <h1 id="em-editor-s-choice-trump-s-crypto-vision-polygon-s-major-upgrade-bitcoin-s-hashrate-record-and-more-source-youtube-em"><em>Editor’s Choice: Trump’s Crypto Vision, Polygon’s Major Upgrade, Bitcoin’s Hashrate Record and More. Source: YouTube</em></h1>
 <h1 id="br-em-strong-magazine-strong-em-a-data-ct-non-breakable-null-href-https-cointelegraph-com-magazine-spot-bitcoin-etfs-hackers-risk-caroline-ellison-ftx-prison-hodlers-digest-rel-null-target-null-text-null-title-null-em-strong-bitcoin-etfs-may-face-hacker-threats-ellison-seeks-no-prison-time-and-more-hodler-s-digest-sept-8-14-strong-em-a"><br><em><strong>Magazine: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/spot-bitcoin-etfs-hackers-risk-caroline-ellison-ftx-prison-hodlers-digest/" rel="null" target="null" text="null" title="null"><em><strong>Bitcoin ETFs may face hacker threats, Ellison seeks no prison time, and more: Hodler’s Digest, Sept. 8 – 14</strong></em></a></h1>
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Velar’s new Bitcoin DEX offers yield and liquidity for BTC holders

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